Second Best Day For Stocks Leaves Bonds And Bullion Bruised And Battered

Volatility is back - though the averge joe-sixpack would hardly know it as stocks see their second best day of the year. The Dow Jones Industrial Average saw its widest weekly range in 2013 - 460 points low-to-high; even as it closes green. The Nikkei the same (with another ugly week). The USD saw its worst week in 19 months (as JPY carry unwinds hit) but the commodity complex was very dispersed. Oil prices surged 4.6% on the week (so no tax cut there then!) while Silver prices plunged 3%. US Treasury prices close down for the sixth week in a row (for the first time since May 2009). The ramp in the late day today - which held us nicely green on the week in stocks - was absolutely ignored by credit markets which ended the week notably wider.

 

Aside from the opening day idiocy, this was the best day for stocks in 2013...

 

as all the indices managed to scramble back into the green on the week...

 

but it wasn't all easy money as builders ended the week -1.65%...

 

Volatility is back.. and it didn't work out so well the last few times...

 

with the Nikkei down for the 3rd week in a row...

As the USD was hammered the most in 19 months...

 

Treasuries down for the sixth week in a row...

 

Quite a week in FX markets...

 

WTI surged 4.6% on the week while Silver plunged 3%

 

Credit markets made it back to the unchanged mark on the week at the European close and then turned south to close the week notably wider....

 

Charts: Bloomberg and Capital Context

Bonus Chart: Does make you wonder why these two markets keep spiking and reverting to one another...